Today's up-and-coming supply chain professionals are no-nonsense, results-oriented types who are eager to make a splash. But recruiters take note: It's going to take more than money to snag one.
Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.
If the recruitment process for supply chain management professionals were conducted like the National Football League draft, then William Smith might be considered a first-round pick.
Smith, 22, will graduate in December from the University of Tennessee at Knoxville with two degrees. One is in logistics with a concentration in international business. The other is in Spanish.
In theory, Smith sits in the young logistician's version of the "sweet spot." Not only does he enter a field growing in corporate and geographic relevance, but he also possesses the bilingual skills that will enable him to more easily assimilate into foreign markets and cultures than his unilingual peers.
So what will it take to hire Smith, who is just now starting to chart his career path and has yet to receive any job offers? More to the point, what will it take to retain him?
Recruiters may be interested to know that in Smith's case, it's not about the money. Rather, it's about having the freedom and the autonomy to change the game.
"I would like to have the authority to come up with unique solutions to problems and challenges I'm presented with," he says. "I'd like to know that my perspectives and contribution are making a difference for my company and its customers."
Asked where he puts financial compensation on the priority list, Smith replies, "This is my career. I want to have more fulfillment than just financial well-being."
It's not about the money
Meet the "newbies" of the supply chain, a paradox in progress. They possess the tech savvy and global orientation you'd expect of today's young professionals. They are no-nonsense, results-oriented types who will demand the flexibility—largely enabled by mobile office technology—to do it their way.
At the same time, they seek jobs that offer the promise of stability and continuity, a trait that runs counter to the conventional wisdom about the newest generation of workers. Many take for granted that they will be able to advance within their chosen organization. And they expect to make an impact that goes beyond their bank accounts.
Money is just a small slice of the pie, according to those interviewed for this story. "At this age, you really don't need to make that much of it," says Dian Cui, a 2009 industrial engineering graduate of Dalhousie University in Halifax, Nova Scotia, and today a supply chain analyst for the Nova Scotia Liquor Corp. in Halifax.
Kevin Remillard, a 2010 Georgia Southern University graduate recently hired by third-party logistics giant C.H. Robinson Worldwide Inc., says that "money wasn't my main concern" in accepting Robinson's offer over three others. The key factor, he says, was that Robinson was a "company I could see being with one, five, or 10 years out."
Ironically, two Robinson executives say that while they tout the company's stability and longevity—Robinson was founded in 1905—in interviews and at job fairs, the message seems to be lost on many young people. "It kind of just flies by them. I don't think it's looked at too closely," says Eric Mesenburg, the company's director of recruiting.
Laura Gillund, Robinson's vice president of human resources, says she hears more discussion about workforce stability from the parents of college graduates than from the graduates themselves. The subject also comes up more frequently with job seekers in their late 20s and early 30s with a decade of experience under their belts, she adds.
Cui believes job seekers in their early 20s are less likely to be concerned about their long-term prospects with an employer than their older counterparts are. He says that many companies with relatively small supply chain operations expect newly minted hires to stay two or three years, gain experience while delivering productivity, and then move on to a larger organization. Cui says he's happy with his employer and his current position but adds he would eventually like to return to his native China and apply his skills there.
Charlie Crawford, who is enrolled in the graduate program in industrial engineering at Virginia Tech, says the craving for stability may be more a reflection of uncertain economic conditions than any altruistic urges. "It's a sign of the times," he says.
For his part, Crawford says he would prefer a stable career path, but with his own imprimatur. "Many companies tout rotational programs, but that doesn't interest me," he says. "I want to know what the company has for me now, and what the options are for me one or two years from now. I want to know what I am going to be doing."
Crawford, who did stints at two companies during his college years and was part of a team that won a distribution center design award in 2008 from the Material Handling Industry of America (MHIA), says he will not join a company that doesn't have defined career paths for its employees. "If a company doesn't have a vision for where this person is going, then [the individual] will probably not get there," he says.
Room at the top?
In a tough job market, employers can be selective. For example, Starbucks Coffee Co., which has launched a global effort to build a high-level personnel pipeline to support its supply chain for the next 15 to 20 years, will only consider the top 10 percent of the graduating class of the schools it plans to work with, according to Shawn Simmons, Starbucks' vice president, partner resources for supply chain operations.
The ideal candidates—Starbucks plans to hire and groom eight to 12 people per year for the foreseeable future—will have exposure to Fortune 500 organizations either through prior work experience or internships, must have demonstrated leadership in previous roles, and be open to accepting international as well as domestic positions, Simmons says.
Whether it be at Starbucks or other companies its size, today's college graduates or graduates-in-waiting may have to bide their time before assuming high-ranking leadership roles. A 2009 survey by Ohio State University found that the average age range for directors and vice presidents was 45 to 49. Although that was down a bit from the 50- to 55-year range reported in prior studies, there were more over-55 executives holding senior management titles than in years past, the survey found.
For those worried about a lack of young blood to replace today's upper echelon, Crawford has some encouraging news. In addition to the students who are pursuing formal studies in logistics, he says, there will be plenty of others who are open to careers in the profession. Many of his peers have developed an interest in logistics and supply chain management not because of an affinity for the discipline itself, but for its effect on so-called vertical fields like health care and automotive.
"The supply chain is expanding into many different areas of operation," he says. "We will see people taking standard concepts and applying them in different ways. Someone who is interested in health care but not in supply chain management now finds [the supply chain] stimulating because of the impact it has on that person's chosen field."
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”